Potential Inverse H&S Bottom on Gold (GLD)

From Jesse's Café Américain:

We have been watching this form up for some time.

The targets for a breakout are on the chart.

It works when we hold the lows and breakout over the neckline and stick it on a daily chart. Since much of the gold action is the inverse of the US dollar which is benefiting from a short term squeeze we think the targets may be conservative as the shorts scramble for scarce supply to cover.

The wild cards are the central bank market meddling and a potential 8-10% downdraft in equities which tends to foster liquidation selling of most assets.

Click to enlarge

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Sources :

Jesse's Café Américain: Potential Inverse H&S Bottom on Gold, 20 October 2008 02:35 pm

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